UK retailer Marks & Spencer has confirmed the sale and franchise of its retail business in Hong Kong and Macau to its long-established franchise partner Al-Futtaim.
The sale, which completed on 30 December, sees Al-Futtaim become the new sole franchisee for M&S in Hong Kong and Macau and follows a strategic review of M&S’s international business in November 2016, when the retailer proposed to have a greater focus on its established franchise and joint venture partnerships and operate with fewer wholly-owned markets.
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Al-Futtaim has worked in partnership with M&S since 1998 when it opened the first M&S store in Dubai. Today, following the purchase of 27 stores in Hong Kong and Macau, Al-Futtaim operates 72 M&S stores across 11 markets in Asia and the Middle East.
“We have substantially reshaped our international business, which has improved profitability and positioned us for growth,” explains Marks & Spencer’s international director Paul Friston. “As one of the world’s leading retail operators, with strong logistics capabilities and local expertise, Al-Futtaim is the ideal partner for us to develop and grow our business in Hong Kong and Macau.”
Stephen Rayfield, vice president M&S and sports and lifestyle division at Al-Futtaim adds: “We are delighted to strengthen our long-term partnership with M&S and expand Al-Futtaim’s international footprint to Hong Kong and Macau. Al-Futtaim looks forward to building on our solid foundations as we continue to enrich our customers’ lives and aspirations through the provision of quality products and services in Hong Kong and Macau.”
Talks regarding the acquisition began in August of last year.
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By GlobalDataM&S in franchise talks for Hong Kong and Macau business
